Japan, Asian Markets Drop; Machinery Orders Fell 8.2%

Nigel Thomas
10 Nov, 2011
New York City

Japan stocks declined following the regional losses in Asian markets. Banks were among the leading decliners. Machinery orders in September fell 8.2%. Olympus stock plunged daily limit as police inquiry begins.

[R]6:00 PM Tokyo – Japan stocks declined following the regional losses in Asian markets. Banks were among the leading decliners. Machinery orders in September fell 8.2%. Olympus stock plunged daily limit as police inquiry begins.[/R]

Stocks in Japan fell on the new tensions in the euro zone and a growing realization that Italy has reached a new level in its crisis. The indexes plunged led by a decline in banks and export sensitive companies and machinery orders declined in September.

Olympus faces police inquiry among many other investigations that are likely to grow in the next few weeks.

The Nikkei 225 Stock Average decreased 2.9% or 254.64 to 8,500.80 and the broader Topix index fell 2.6% or 19.10 to 730.30.

Markets in Hong Kong plunged 5%, in Shanghai declined 1.8% and in Mumbai were closed for a religious holiday. The indexes in Australia dropped as high as 3% and banks were among the leading decliners.

Machinery orders declined 8.2% in September from August according to the latest data released by the Cabinet Office.

Stock Movers

Toyota Motor decreased 43 yen to 2,499 yen and Honda Motor Co. declined 75 yen to 2,260 yen and Nissan Motor Co Ltd fell 26 yen to 701 yen.

Jtekt Corp fell 1.9% to 728 yen, NTN Corp declined 2 yen to 303 yen and NSK Ltd declined 19 yen to 505 yen.

Sony Corp decreased 65 yen to 1,322 yen, Panasonic Corp fell 26 yen to 689 yen and Canon Inc declined 80 yen to 3,365 yen.

Nintendo Co. Ltd added 160 yen to 12,410 yen.

Olympus Corp plunged 100 yen or 17.1% to 484 yen but failed to open. The notional price of the stock displayed on the traders’ screens was only indicative price and declined its daily limit after police opened a criminal inquiry and financial services regulator is expected to open its inquiry as early as next week.

Nomura Holdings, Inc decreased 3% to 247 yen on the worries that the company may be dragged into Olympus inquiries.

Chip makers were on the slide after the price of DRAM memory modules for 2 GB declined to record low of 77 cents.

Elpida Memory Inc fell 10% to 377 yen and Tokyo Electron plunged 5.8% o 3,930 yen.

Fanuc Ltd decreased 530 yen to 12,280 yen and Kyocera closed down 390 yen at 6,620 yen. Nikon Corp decreased 41 yen to 1,719 yen.

Mitsui OSK Lines, Ltd decreased 15 yen to 261 yen, Kawasaki Kisen Kaisha, Ltd closed down 5 yen to 138 yen and Nippon Yusen K.K. fell 5 yen to 181 yen.

Dai-ichi Life fell 8.5% to 75,500 yen as the yields on the Italian bonds reached a new high of 7.35%. The life insurance company holds bonds of Spain and Italy that have declined in value in the last six months.

Property and Casualty insurers declined on the mounting losses related to Thailand floods.

MS & AD Insurance Group Holdings, Inc closed down 21 yen to 1,536 yen and NKSJ Holdings Inc declined 55 yen to 1,539 yen.

Mitsubishi UFJ Financial Group fell 9 yen to 329 yen and Sumitomo Mitsui Financial Group decreased 100 yen to 2,030 yen.

Machinery makers declined after the latest government report showed orders declined in September month.

Komatsu Ltd decreased 101 yen to 1,898 yen and Hitachi Construction Machinery Co decreased 92 yen to 1,441 yen.